What does the spend-down program in Medicaid allow beneficiaries to do?

The spend-down program in Medicaid is designed for individuals whose income exceeds the Medicaid eligibility limit but still requires assistance because of high medical expenses. This program allows beneficiaries to incur or 'spend down' their excess income on qualifying medical expenses, effectively reducing their countable income to meet the necessary threshold for Medicaid eligibility. By covering costs such as medical bills or medications, beneficiaries can become eligible for Medicaid services despite their higher income.

The other options do not accurately represent the purpose of the spend-down program. Increasing income levels is contrary to the program's intent, and accessing additional benefits does not directly correlate with the spend-down mechanism. Additionally, transferring assets to family members to qualify for Medicaid can lead to potential penalties and does not align with how the spend-down program functions. Instead, the focus is on the expenses incurred, making option C the definitive and correct choice in this context.